TaxTMI 
TaxTMI 
2023 (5) TMI 274
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....5.2022 for the AY 2016-17. 2. The revenue has challenged the order of Ld. CIT(A) wherein the Ld. CIT(A) has allowed the deduction u/s 57(iv) of the Act from the interest received on compensation by the assessee from Govt. of Rajasthan in respect of compulsory acquisition of land. The revenue has also challenged the order of Ld. CIT(A) on the ground that income of the trust is inclusive of all the income and no separate deduction is allowable while determining the income u/s 11 of the Act. 3. Facts in brief are that the assessee filed return of income on 16.10.2016 declaring total income at NIL. The Case of the assessee was selected for scrutiny and statutory notices were duly issued and served upon the assessee. The assessee trust was cla....
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....he appellant (50% of 5,79,74,943/-) is as per the provisions of I.T. Act. Further the appellant has uploaded other evidence such as receipt of interest on compensation, Bank statement, letter issued by the Rajasthan Govt. to fortify its claim. Therefore, it is hereby held that the determination of total income at Rs. 2,36,48,683/- by the AO in the order u/s 143(3) dated 24.12.2018, has no merit and not in tune with the provisions of I.T. Act. As the claim of deduction of Rs. 2,89,87,471/- u/s 57 by the appellant is duly supported by the entries in ITR7 dated 16.10.2016, and other supporting evidence such as Bank Statement and letter issued by the Rajasthan Govt, the appeal on this issue is hereby allowed. 5.3. In the result, the appea....
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.... 56, a deduction of a sum equal to fifty per cent of such income would be allowed and no deduction shall be allowed under any other clause of this section. It is apparently clear from perusal of the provisions of section that the interest received by the assessee on compensation is taxable under the head income from other source and while computing the income of the assessee a deduction has to be allowed 50% and no other deduction shall be provided under any other clause of this Section but there is no bar in claiming exemption of compensation income u/s 11 of the Act as the section specifically provides that under this section which is 57 of the Act no other deduction shall be allowed. Besides the case of the assessee finds supports from c....